Giving Compass' Take:

• The Chan Zuckerburg Initiative invested millions in Handshake, a startup that helps college students obtain jobs. 

• How will investing in this startup help the Chan Zuckerburg Initiative grow? Will more philanthropists start investing in startups? 

• Read about what climate startups Bill Gates is investing in. 

The Chan Zuckerberg Initiative, the philanthropic arm of Facebook CEO Mark Zuckerberg and his wife Priscilla Chan, has invested in Handshake, a fast-growing startup focused on job recruitment for college students.

The organization joined the Omidyar Network, Reach Capital, and previous investors in the $40 million funding. EQT Ventures led the round and EQT partner Alastair Mitchell joined the startup’s board of directors.

Although The Chan Zuckerberg Initiative may be known for philanthropic efforts that focus on healthcare and other sectors, it also invests in startups.

In Handshake’s case, the startup sells software to universities that lets them more efficiently manage student career services and job placement. Students can create LinkedIn-like profiles that they can fill with relevant coursework or extra-curricular activities to make them more attractive work candidates for businesses.

Tim Streeter, the global head of recruitment for home appliance giant Whirlpool, is testing Handshake’s service. With Handshake, Streeter said that Whirlpool can more easily scout students nationwide without having to attend school “career days,” where they may end up courting students who have no intention of ever moving.

Over 700 universities and 300,000 companies use Handshake’s software. Wu said that she’s working with Lord to create programs to help companies recruit more diverse candidates, but declined to elaborate. A Chan Zuckerberg Initiative spokesperson added that details are still to be defined.

Read the full article about investing millions in Handshake by Jonathan Vanian at Fortune.